The merger of Orange and T-mobile UK, better known as Everything Everywhere, has managed to post respectable figures for the first quarter of 2011. The combined forces managed to keep mobile service revenue on track, keeping in line with the 1.6 percent year-over-year growth by adding 160,000 new customers and reducing churn from 1.5 to 1.3 percent.

Changes were brewing between Orange and T-mobile during the first quarter as 2G national roaming was extended to 15.1 million customers, resulting in 350 million calls completed using the alternate network over the quarter. Thanks to 160,000 customer additions, the combined networks are now home to 27.7 million. The big shift this quarter was an 8.1 percent growing in contracts and a 6.0 percent decrease in prepay. This is the type of shift a carrier loves to see when it has its sights set on lowering churn.

The outlook looks bright for Everything Everywhere. The combination of a the successful launch of the iPad 2 on both Orange and T-mobile in March, contract-less mobile payments, and a refresh to the Orange pre-pay offer with top-ups from as little as 10p will continue throughout the second quarter.